【Today’s Highlights】The National Development and Reform Commission and other departments announced that by the end of 2027, 28 million charging facilities will be constructed nationwide. The notice released includes the "Three-Year Doubling Action Plan for Electric Vehicle Charging Facilities Service Capability." This plan aims to boost consumer confidence and promote wider adoption of electric vehicles by continuously improving the charging network, enhancing efficiency, optimizing service quality, and innovating the industry ecosystem. By the end of 2027, the target is to establish 28 million charging facilities capable of providing over 300 million kW of public charging capacity to meet the demands of over 80 million electric vehicles, achieving a doubling of charging service capability. Related stocks in the Hong Kong market include LENS (06613), NIO-SW (09866), Li Auto-W (02015), BYD Company Limited (01211), and CATL (03750).

【Market Outlook】International gold prices have broken the $4,200 mark, continuing to set historical highs. As for the US market, the Dow Jones Industrial Average closed at 46,253.31, down 17.15 points or 0.04% from the previous trading day. The S&P 500 rose by 26.75 points to 6,671.06, marking an increase of 0.4%, while the Nasdaq Composite added 148.38 points to close at 22,670.08, up 0.66%. Most major tech stocks experienced gains, with AMD rising over 9% and Intel gaining more than 4%. Precious metals, semiconductors, and storage concept stocks surged, with gold resources up over 10% and Americas Silver Corporation up by more than 8%. Most Chinese concept stocks rose, with the Nasdaq Golden Dragon China Index increasing by 1.7%. New Oriental rose by over 10% while Century Internet gained over 4%. The Hang Seng Index ADR declined, closing at 25,814.21, down 96.39 points or 0.37%. The COMEX gold futures for the current month rose by $38.20, or 0.92%, to $4,201.60 per ounce.

【Hot Topics Ahead】According to the Federal Reserve's Beige Book, the overall US economic activity has changed little, employment is stabilizing, but inflationary pressures remain. The report indicates a slight decrease in overall consumer spending and an increase in input costs across many regions. The Hong Kong Monetary Authority announced the second batch of participants in the GenA.I. sandbox to further promote responsible AI applications. The themes include multi-agent AI credit portfolio management, intelligent trade finance processing, and AI-generated investment insights. Given the increasing risks of deepfake fraud, the sandbox also aims to provide a testing ground for developing innovative defense mechanisms. Participating banks include HSBC, Standard Chartered, Bank of China, and Ant Bank.

September's China E-commerce Logistics Index reaches a new high for the year. The China Federation of Logistics and Purchasing reported today that the China E-commerce Logistics Index continued to rise in September, reaching 112.7 points, up 0.4 points from last month, a new high for the year. In September, the total business volume index for e-commerce logistics was 132.5 points, up 1.1 points from the previous month. Regionally, all areas except the eastern region saw recovery, with the central region showing the largest increase.

Apple's COO visits Lens Technology. On October 14, Apple's Chief Operating Officer Sabih Khan visited Lens Technology in Taizhou, Jiangsu, where he toured the workshop accompanied by Chairman Zhou Qunfei to investigate Lens' practices in intelligent manufacturing, green production, and talent development. Currently, Lens' supply chain for Apple includes several product lines such as iPhone, Apple Watch, Mac, and Apple Vision Pro.

In a significant industry first, Baidu (09888) has achieved real-time interactive generation of long AI videos. Baidu announced the latest upgrade to its video generation model, Steam Engine, which overcomes the conventional 10-second limitation for AI video generation, marking an industry milestone. Users can initiate a video generation process by uploading a single image and a prompt, and they can preview the model's full inference in real-time. During the generation process, users can pause or modify prompts at any time, allowing real-time control over video narrative, visuals, and transitions.

According to the latest disclosures from the Hong Kong Stock Exchange, Ping An Life increased its holdings in China Merchants Bank H-shares by 2.989 million shares on October 10, raising its total holdings to over 780 million shares, surpassing 17% of the bank's H-share total. Previously, Ping An Life acquired a significant stake on January 10.

KPMG reports that AI has permeated every aspect of drug development. KPMG officially released the "Third Report on Leading 50 Enterprises in Biotech Innovation," which shows that AI has infiltrated all phases of drug development, from drug target discovery, synthetic pathway optimization to clinical trial design. Particularly in precision medicine, AI's application has surpassed being merely an assisting tool, optimizing deep neural network models to improve the accuracy of gene editing from about 85% in traditional methods to over 98%, clearing key obstacles for the clinical translation of gene therapy. Related stocks include XTALPI (02228), Via Biotechnology (01873), and Zhaoyan New Drug (06127).

Institutions expect better-than-expected utilization rates for foundry capacity in the second half of the year. According to the latest survey by TrendForce, foundries are not facing the anticipated decrease in capacity utilization due to low IC inventory levels, the start of the smartphone sales season, and persistent strong demand for AI. Some foundries are expected to perform better in the fourth quarter than in the third, prompting certain companies to consider increasing prices for tight process platforms like BCD and Power.

Zhejiang Sanhua Intelligent Controls (02050) denies rumors of major robot orders. The company announced that it has noticed numerous rumors about obtaining large orders for robots on the internet. Upon verification, the company clarifies that these rumors are untrue, and there are no major undisclosed matters; as of October 15, 2025, the company has not participated in media interviews.

China Urban Construction Design (01599) won important projects worth approximately RMB 3.175 billion in the third quarter. The company announced that as of September 30, 2025, it had secured contracts worth RMB 3.175 billion in important projects (unaudited), with approximately RMB 250 million (unaudited) in the survey, design, and consulting sector, and about RMB 2.925 billion (unaudited) in the general contracting sector.

UBTECH ROBOTICS (09880) has secured nearly RMB 500 million in contracts for the Walker series humanoid robots. On October 15, the company announced that it has officially signed a procurement contract with a well-known A-share automotive technology company for humanoid robots, involving over RMB 32 million primarily for the latest Walker S2 products and solutions covering factory manufacturing applications. The order is expected to be fulfilled within 2025, and to date, UBTECH's Walker series humanoid robots have received nearly RMB 500 million in contracts.

China National Pharmaceutical Group (01177): TQ-B3234 "Selective MEK1/2 Inhibitor" included in the breakthrough therapy designation program. The company announced that its self-developed National Class 1 new drug TQ-B3234 capsules, a "selective MEK1/2 inhibitor," have been included in the breakthrough therapy designation program by the Drug Evaluation Center (CDE) of the National Medical Products Administration (NMPA) for the treatment of symptomatic, inoperable adult plexiform neurofibromas associated with Neurofibromatosis type I (NF1).

Zhonghui Biotechnology-B (02627) applies for full circulation of H-shares. The company announced on October 15, 2025, that it has submitted an application to the China Securities Regulatory Commission to convert 81.66 million unlisted shares into H-shares and list those shares on the Hong Kong Stock Exchange.

Yunjie (02670) sees a dark market rise of over 47%; each hand earns HKD 2,275. Yunjie will debut on the Hong Kong Stock Exchange on October 16. As of closing, the dark market trading showed a quote of HKD 141.1, up 47.59% from the offering price of HKD 95.6. Each lot consists of 50 shares, resulting in a profit of HKD 2,275 per lot, excluding fees.

【Stock Spotlight】China National Building Material (03323): Potential for accelerated capacity contraction in the cement industry. On October 14, the company issued a positive earnings forecast, expecting a net profit of RMB 2.95 billion for the first three quarters of the year, turning a profit year-on-year. This positive outlook is mainly due to lower sales costs for cement and ready-mixed concrete products and increased profits from joint ventures. The Ministry of Ecology and Environment is soliciting opinions on the cement industry's carbon emissions trading quota plan, which focuses on key emitting enterprises for quota allocation, promoting production limits and clearing outdated capacities, thus benefiting leading firms. Galaxy Securities noted that as winter approaches, cement companies are preparing to raise prices, coupled with expectations of rising coal prices, which will further support cement prices. The firm anticipates that the supply-demand imbalance in the cement industry will ease under the influence of "anti-involution" policies, leading to restored profitability for regional leaders. Shenyin Wanguo also indicated that while the third quarter is traditionally a slow season for the cement industry, cement prices are expected to follow a "high before low" trend in 2025, with the fourth quarter being a peak period for supplementary capacity indicators where capacity contraction is likely to accelerate, leading to higher industry concentration benefiting leading companies.